(a) The secretary is authorized to enter into contracts with
any provider sponsored network licensed by the insurance
commissioner in accordance with the provisions of article twenty-
five-g, chapter thirty-three of this code, to arrange for the
provision of health care, services and supplies for Medicaid
beneficiaries. Such contract:

(1) Shall be subject to the same criteria and standards
applied to other managed care organizations; and

(2) May provide that the provider sponsored network will share
with the department up to 25% of any net profits realized during
the period of the contract.

(b) The service, administrative and performance criteria to be
met by provider sponsored networks shall be the same as required of
other managed care organizations providing services to Medicaid
beneficiaries in the state.

(c) A licensed provider sponsored network shall be deemed an
HMO for the purposes of federal regulations governing the Medicaid
program to the extent permitted by such regulations.